Saving your money in commercial banks allows you to earn some from the compounded interests. But, it also involves 20% tax. In spite of the current inflation rate, it is also expected that your money will eventually depreciates
The good news is that PAG-IBIG offers several savings programs that carry higher interest rates. Some of the programs offered by this organization include salary and home loan, multipurpose loan, and calamity loan.
To provide better services to their clients, PAG-IBIG started to offer the Modified PAG-IBIG MP2 savings program that offers higher dividend rate of 5.44% per annum. PAG-IBIG members who were members of the PAG-IBIG 1 can apply for membership in MP2.
These two are different programs since the PAG-IBIG 1 is mandated by the government for employed individuals. The minimum monthly contribution is Php200 shared by both the employee and employer. To avail the MP2, you need to ensure that you’re updated in paying the PAG-IBIG 1 contributions.
On the contrary, the MP2 carries higher interest rates as compared to commercial banks and even with time deposit accounts. This is a profitable way to expand your investment portfolio and ensure that your money will grow and generate more income.
Advantage of upgrading to PAG-IBIG MP2 savings programs
The advantage of signing up to MP2 savings program is that your loanable amount will also increase. Aside from the higher dividend, it is also tax-free. Likewise, you can ensure that your investment is secured by the government.